The Usual Protocol’s stablecoin, USD0++, has lost its peg and is now trading at $0.91 after the company announced a change in its design. The team effectively transformed USD0++ from a stablecoin into a four-year zero-coupon bond worth $0.87.
Following the announcement, hundreds of millions in user
While DeFi yields are highly attractive to traditional investors, the DeFi market still carries risks, making the convergence of DeFi and TradFi a longer-term prospect.
Aave’s growth is fueled by increased leverage demand and a surge in monthly active users. The protocol is also expanding its integration with Layer 2 networks and preparing to launch a major upgrade in mid-2025.
Arthur Hayes envisioned a stablecoin independent of the fiat banking system. Ethena, inspired by his ideas, still relies on centralized systems like USDT, falling short of full decentralization.
Polygon investors face uncertainty as Lido exits due to adoption struggles and increased competition, while Aave considers following suit amid governance disputes.
